Track These 7 Google Ads Metrics And Improve Your PPC Campaigns
Google Ads, formerly known as Google AdWords, is the leading advertising platform that operates on a pay-per-click model. It allows marketers to match promotion with user intent by tracking hundreds of Ads metrics. This guide is for beginners that don't know what metrics are in Google Ads and why they are important.
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Today Google is huge. It has even gone beyond a brand to become a verb, and the term "Google" is defined in the Merriam Webster Dictionary. Google is a place that offers solutions to any problems people may encounter. And this is where your business steps in. You can offer that solution. Unfortunately, the competition is high. Google Ads would be a solution for brands. It helps display ads in various places and pushes their products higher than regularly placed sites.
Proper measures must be taken and metrics tracked in order to run effective ads and rank higher than your competitors. We identified seven key indicators that indicate how well your Google Ads campaigns are performing.
Number of impressions
Impressions are one the most important metrics of Google Ads. It shows the number of times your ad was displayed on a Google search result page:
- Based on matches between the keywords you use in your campaign;
- Based on the terms and phrases within search queries.
Your ad relevance needs to be high enough to get a click. Then, the more relevant the ad, the more likely you'll get a click, which then can convert. In other words, you need impressions to get conversions. That’s why you need to track this metric, regardless of your goal.
Bonus tip: Use Google's Quality Score. We're covering this one below.
Cost per click (CPC)
As we mentioned before, Google Ads operates on a PPC model. This means that you'll need to set the Google Ads campaign budget in advance. You will be the one indicating how much money and where you spend it. Cost, one of the paid search metrics, is money effective as you'll only be paying when a user reaches your website.
The average yearly cost of PPC is between $108,000 and $120,000. How to know you are taking full advantage of this money? Take a look at your keywords: Do they generate website visits; Are you ranking high in search engine page results; How many people click on your Ads. Evaluate the money you spend on keywords and whether or not you get the most out of them.
Bonus tip: Bid on branded keywords and phrases of your competitors. As a result, when that brand name is entered as a search term, your ads will appear. The objective is to redirect traffic away from the competitor's site.
Click-through rate (CTR)
This metric shows the number of clicks on your ad, or more specifically, how many times any linked text in your ad was clicked. Usually, more clicks mean that more people are coming to your site thanks to your ad. Keep in mind that the current average click-through rate for search ads on Google is 1.91%.
This metric can help you realize if people are attracted by your ad, and if you need to change anything to make it more appealing to them.
Bonus tip: More clicks is not equal to quality clicks. See the source of these clicks, demographics, and what the visitor does on your website. This way you'll identify you are ranking on the right keywords and targeting the right audience.
Whenever someone clicks your ad and takes the desired action (signup, a visit to your webpage), it’s counted as a conversion. It is significant you track this metric to see how many conversions you drive and what's the source of them. To count your conversions, either use our free Google AdWords dashboard or count it yourself: take the number of conversions and divide that by the number of total ad interactions.
Cost per acquisition
The average cost per acquisition across Google Ads is $56.11 on the search network and $90.80 on the display network. This number indicates tells you how much, on average, each of your conversions cost. The cost includes all the traffic for the duration of a campaign, during which conversions are also tracked.
To get the most out of your money and cut costs, you must track your spending and begin budgeting. Without doing it, you run the risk of overpaying and wasting money. So, your goal should be to reduce CPA while also running an efficient advertising campaign with ads that are relevant enough to be clicked on. Try out our free Google AdWords report. It generates a detailed report that shows how much money you spend on acquiring a single user. This way you can start making data-driven decisions and start adjusting your money.
Return on marketing investment (ROMI)
Last but not least, there's ROMI. This metric is useful for marketers because it shows how well your marketing channels are:
- Meeting your specific objectives;
- Allocating funds.
To put it another way, it assesses the effectiveness of advertisers' online marketing campaigns. This metric indicates whether marketing campaigns generate revenue and profit in comparison to the money spent on Adwords campaigns.
Consider Quality Score to be a tool that shows you how your competitors' ads compare to yours. It is typically measured on a scale of 1-10, with the higher the Quality Score indicating that your ad is more useful (for your keyword) when compared to other advertisers. Quality Score identifies the following key factors:
- Where your ads could be improved;
- Where and how your landing pages could be optimized;
- Whether or not you chose the right keywords.
To calculate your ad's Quality Score, you must examine the performance of three components. CTR, ad relevance, and landing page experience are all factors to consider. Each component is rated as "Above average," "Average," or "Below average." This assessment is based on a comparison with other marketers whose ads appeared for the exact same keyword in the previous 90 days. If one of these components has a status of "Average" or "Below Average," this may indicate a chance to improve.
Analyze marketing data
Once you have your ad account set up, your ad groups and campaigns set properly indicated proper ad position and ad text, you need to start collecting and analyzing data.
- Google ads require constant analysis which includes monitoring, evaluation, and optimization. Google Adwords reporting tool (a.k.a Google Analytics) may be a great solution for beginners and pros.
That’s why you need to know which metrics are important to track and which are not worth your time and effort. The goal is to use the data they provide to improve your ad campaign’s performance.
- You should also be using the Google Ads dashboard. Here is a pre-built template.
Keep an eye on your key performance indicators (KPIs). The template displays key metrics of your PPC performance. Track: click-through rate, any ad group, or conversions. Get an accurate picture of your Google Ads data in seconds and make quick, informed marketing decisions.